- Status
No official statement from BetWWTS or parent company BetCorp at the time of this submission.
Management of TheRx.com was told on Friday that a sale had been finalised, and that details were to be released today. At present, we have no official confirmation of any such sale and urge caution when considering the effects of any rumours in circulation.
The following is the most recent news item surrounding BetWWTS and BetCorp, from Reuters:
Betcorp suspends U.S. operations, in sale talks
SYDNEY, Oct 16 (Reuters) - Australian online gaming company Betcorp Ltd. (BCL.AX: Quote, Profile, Research) said it had suspended its U.S. operations and was in sale talks with a number of parties after the United States moved to ban online gambling earlier this month.
Betcorp's shares, which have fallen more than 70 percent since the law was passed by the U.S. Congress, fell 12.2 percent to A$0.395 on Monday, giving the company a market value of about A$8.4 million.
Analysts said interest in Betcorp's business was likely to be limited, with any potential buyer likely to be based overseas.
"If you take away the major market, which is the U.S., obviously anyone who is interested will not be paying a significant price for it," F.W. Holst & Co. analyst David Spry said.
Gaming companies worldwide were rocked earlier this month when the U.S. Congress unexpectedly passed a bill making it illegal to accept wagers over the Internet, or for credit card companies to process payments to online gaming firms. U.S. President George W. Bush signed the legislation on Friday.
Since the U.S. bill was passed at the end of September more than $7 billion has been wiped off the market value of Britain's online gaming companies.
Betcorp derived about four fifths of its revenues from U.S. residents.
"The board is continuing discussions with a number of unconnected parties who have expressed interest in the acquisition of the group's gaming operations and infrastructure," said Betcorp, adding it continued to trade with residents of 87 other countries.
"There is no certainty that such discussions will lead to a sale, or on what financial terms such a sale might take place," it said in a statement to the Australian Stock Exchange.
The company said it planned to cut its staff by around a third and it expected to make a further announcement in the next 10 days.
Mitch Garber, chief executive of PartyGaming Plc. (PRTY.L: Quote, Profile, Research), operator of Internet poker site PartyPoker.com, told the Financial Times that his firm was interested in buying companies impacted by the new U.S. legislation.
Private investors are also considered likely buyers.
British online gambling companies Sportingbet Plc. (SBT.L: Quote, Profile, Research) and Leisure & Gaming (LNG.L: Quote, Profile, Research) both said on Friday they had each sold their U.S. operations to private investors for $1.
Betcorp's domestic fellow online casino operator Lasseters Corp. Ltd. (LAS.AX: Quote, Profile, Research) also said it was no longer offering services to the U.S. market, but would stay in the remaining online global gaming market.
Lasseters said the U.S. decision had eliminated about half of the world's estimated US$10 billion online gaming industry. It said it entered the U.S. market eight years ago and it accounted for about 70 percent of its annual revenue.
Lasseters said its fiscal 2007 result would be hurt by the decline in revenue, costs from improving its competitiveness and diversifying its services and subsequent write-downs.
"While the short to medium term impact is significant, the board continues to seek out new markets to mitigate the effect," Lasseters Managing Director Peter Bridge said in a statement.
Changes planned by the company include launching an online sports betting operation.
Lasseters' thinly traded shares were steady at A$0.043.
($1=A$1.33)
http://today.reuters.com/news/artic...STRALIA-BETCORP-UPDATE-2.XML&rpc=66&type=qcna
Management of TheRx.com was told on Friday that a sale had been finalised, and that details were to be released today. At present, we have no official confirmation of any such sale and urge caution when considering the effects of any rumours in circulation.
The following is the most recent news item surrounding BetWWTS and BetCorp, from Reuters:
Betcorp suspends U.S. operations, in sale talks
SYDNEY, Oct 16 (Reuters) - Australian online gaming company Betcorp Ltd. (BCL.AX: Quote, Profile, Research) said it had suspended its U.S. operations and was in sale talks with a number of parties after the United States moved to ban online gambling earlier this month.
Betcorp's shares, which have fallen more than 70 percent since the law was passed by the U.S. Congress, fell 12.2 percent to A$0.395 on Monday, giving the company a market value of about A$8.4 million.
Analysts said interest in Betcorp's business was likely to be limited, with any potential buyer likely to be based overseas.
"If you take away the major market, which is the U.S., obviously anyone who is interested will not be paying a significant price for it," F.W. Holst & Co. analyst David Spry said.
Gaming companies worldwide were rocked earlier this month when the U.S. Congress unexpectedly passed a bill making it illegal to accept wagers over the Internet, or for credit card companies to process payments to online gaming firms. U.S. President George W. Bush signed the legislation on Friday.
Since the U.S. bill was passed at the end of September more than $7 billion has been wiped off the market value of Britain's online gaming companies.
Betcorp derived about four fifths of its revenues from U.S. residents.
"The board is continuing discussions with a number of unconnected parties who have expressed interest in the acquisition of the group's gaming operations and infrastructure," said Betcorp, adding it continued to trade with residents of 87 other countries.
"There is no certainty that such discussions will lead to a sale, or on what financial terms such a sale might take place," it said in a statement to the Australian Stock Exchange.
The company said it planned to cut its staff by around a third and it expected to make a further announcement in the next 10 days.
Mitch Garber, chief executive of PartyGaming Plc. (PRTY.L: Quote, Profile, Research), operator of Internet poker site PartyPoker.com, told the Financial Times that his firm was interested in buying companies impacted by the new U.S. legislation.
Private investors are also considered likely buyers.
British online gambling companies Sportingbet Plc. (SBT.L: Quote, Profile, Research) and Leisure & Gaming (LNG.L: Quote, Profile, Research) both said on Friday they had each sold their U.S. operations to private investors for $1.
Betcorp's domestic fellow online casino operator Lasseters Corp. Ltd. (LAS.AX: Quote, Profile, Research) also said it was no longer offering services to the U.S. market, but would stay in the remaining online global gaming market.
Lasseters said the U.S. decision had eliminated about half of the world's estimated US$10 billion online gaming industry. It said it entered the U.S. market eight years ago and it accounted for about 70 percent of its annual revenue.
Lasseters said its fiscal 2007 result would be hurt by the decline in revenue, costs from improving its competitiveness and diversifying its services and subsequent write-downs.
"While the short to medium term impact is significant, the board continues to seek out new markets to mitigate the effect," Lasseters Managing Director Peter Bridge said in a statement.
Changes planned by the company include launching an online sports betting operation.
Lasseters' thinly traded shares were steady at A$0.043.
($1=A$1.33)
http://today.reuters.com/news/artic...STRALIA-BETCORP-UPDATE-2.XML&rpc=66&type=qcna
Bodog.com Acquires BetWWTS
Sources close to TheRx.com claim that Bodog.com has just purchased BetWWTS from Betcorp PLC for a purported $9 million.
The terms of the sale have not been disclosed.
The sale follows a move by Betcorp to turn away US customers in the wake of the Unlawful Internet Gambling Enforcement Act, signed into law by President Bush last Friday. The Act effectively makes illegal financial transactions to internet gambling companies.
Betcorp said it had "suspended the accounts of United States residents with immediate effect", in response to the enactment of the act.
Betcorp had placed a hold on US customer funds since October 13th.
Betcorp said it was "unable to sell its US operations prior to the act coming into force", given that both the ASX listing rules and the AIM Rules required any such transaction to be conditional upon shareholder approval, according to the Sydney Morning Herald. Betcorp PLC is a publicly traded company on the Australian Stock Exchange.
Bodog.com, owned and operated by Forbes cover story mogul Calvin Ayre, is a privately held company in San Jose, Costa Rica.
In the wake of the US anti-gambling legislation, Bodog released a public statement earlier this week claiming that it would take “months to fully understand the ramifications, if any, there are from this new law.”
The firm went on to reaffirm its business model saying, “the pending legislation has validated our broad-based digital entertainment model and our decision to stay private.”
http://www.therx.com/blog_bodog-acquires-betwwts.php
Sources close to TheRx.com claim that Bodog.com has just purchased BetWWTS from Betcorp PLC for a purported $9 million.
The terms of the sale have not been disclosed.
The sale follows a move by Betcorp to turn away US customers in the wake of the Unlawful Internet Gambling Enforcement Act, signed into law by President Bush last Friday. The Act effectively makes illegal financial transactions to internet gambling companies.
Betcorp said it had "suspended the accounts of United States residents with immediate effect", in response to the enactment of the act.
Betcorp had placed a hold on US customer funds since October 13th.
Betcorp said it was "unable to sell its US operations prior to the act coming into force", given that both the ASX listing rules and the AIM Rules required any such transaction to be conditional upon shareholder approval, according to the Sydney Morning Herald. Betcorp PLC is a publicly traded company on the Australian Stock Exchange.
Bodog.com, owned and operated by Forbes cover story mogul Calvin Ayre, is a privately held company in San Jose, Costa Rica.
In the wake of the US anti-gambling legislation, Bodog released a public statement earlier this week claiming that it would take “months to fully understand the ramifications, if any, there are from this new law.”
The firm went on to reaffirm its business model saying, “the pending legislation has validated our broad-based digital entertainment model and our decision to stay private.”
http://www.therx.com/blog_bodog-acquires-betwwts.php
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Regulatory Announcement
Friday 20 October 2006
BETCORP LIMITED
(“Betcorp” or “the Company”)
DISPOSAL OF GAMING OPERATIONS
Betcorp announces that the Company has entered into an agreement, conditional only on the approval of Shareholders, to sell the Group’s gaming operations and operating infrastructure in Antigua and Toronto in their entirety (“the Gaming Operations”) to Bodog Entertainment Group SA.
The consideration payable to Betcorp in respect of the Disposal comprises a maximum cash consideration of US$9 million payable in five instalments. US$3 million is payable on completion and the balance of US$6 million in four equal quarterly instalments during the 12 months following completion. In addition, the Purchaser will be assuming the net current liabilities of the Gaming Operations of US$2 million, implying an enterprise value of US$11 million.
The cash consideration will be reduced by the extent to which the net current liabilities of the Gaming Operations at completion exceed $2 million. Currently, these are expected to be approximately US$3 million. The final amount will be dependent, inter alia, on the trading performance of the Gaming Operations during the period through to the completion date.
Had the Group’s Gaming Operations been closed down, the Board estimates that the cost of severance and closure would have been approximately US$6 million.
Reasons for the disposal
In the United States, the passing into law of the Unlawful Internet Gambling Enforcement Act on 13 October 2006, means that the receipt of funds from US residents by online entertainment companies located in any other country of the world in connection with internet gambling, has become a Federal offence.
The Board received legal advice and representations from its lawyers, bankers and other advisors and concluded, in common with many other listed companies in the sector, that it is no longer possible for the Group to provide its services to United States residents.
The two key issues which led to this conclusion are the possibility of the extra-jurisdictional application of United States legislation and the restrictions on financial transaction processing which are following from the Act. As a result, the Group suspended the accounts of United States residents on 13 October 2006.
Over the last 18 months, the Group has made good progress in increasing the level of business from countries other than the United States, principally in Europe. This has been achieved by a number of initiatives including the introduction of European facing brands and the development of a proprietary multi-currency operating platform. Despite this progress, however, the US market still represented over 85% of the Group's revenues in the period from 3 July 2006 to 13 October 2006.
The Board has considered whether its non-US business could be profitable on the basis of a substantially reduced cost base, but has determined that this would not be possible without a major increase in trading volume. In the current environment, such expansion would require substantial investment in marketing and brand development, or the acquisition of existing non-US facing operators. The Group does not have access to the funds required to adopt either of these strategies and accordingly, the Board has concluded that it is in the best interests of shareholders to dispose of the Group's entire gaming operations and infrastructure.
The Board has considered approaches from a number of interested parties and has concluded that the terms agreed with the Purchaser represent the best available to the Group. In addition to the cash consideration receivable of up to US$9 million, the Purchaser is also assuming the net current liabilities of the Gaming Operations and has undertaken to honour the existing employment rights of employees and the Group's obligations to its customers.
The Purchaser has stated that it intends to invest in developing its own brand into the European and Asian markets utilising the multi-currency shared purse operating platform developed by the Group. The Purchaser has also undertaken not to use any URL, trade mark, brand name or other intellectual property acquired from the Group to provide services to United States residents, following its purchase of the Gaming Operations.
Use of Proceeds and Post Disposal Strategy
The Group will have exited its gaming interests in their entirety, immediately following the Disposal. As a result, the net assets of Betcorp will comprise cash, the deferred consideration payable by the Purchaser and creditors. The Board believes that shareholders' best interests will be served by the return of funds to them and the Board's plans for this will be announced as soon as possible. Shares traded on AIM and currently listed on ASX will rank pari passu in any future dividend or distribution, both before and after the de-listing of the Company's shares from ASX.
Extraordinary General Meeting
Completion of the Disposal is subject to the prior approval of Shareholders at an EGM expected to take place within the next four weeks. A notice of EGM and an explanatory memorandum will be sent to shareholders shortly.
Commenting on the acquisition, Colin Walker, Chief Executive Officer said:
"I am pleased that we have secured the sale of our operating subsidiaries to the Bodog Entertainment Group, one of the leading companies in the digital entertainment sector. In very difficult circumstances we have achieved a satisfactory outcome for shareholders and have been able to safeguard the interests of our customers and employees."
http://content.sininter.com/2006-10-20 Disposal of Gaming Operations v3 FINAL.pdf
Friday 20 October 2006
BETCORP LIMITED
(“Betcorp” or “the Company”)
DISPOSAL OF GAMING OPERATIONS
Betcorp announces that the Company has entered into an agreement, conditional only on the approval of Shareholders, to sell the Group’s gaming operations and operating infrastructure in Antigua and Toronto in their entirety (“the Gaming Operations”) to Bodog Entertainment Group SA.
The consideration payable to Betcorp in respect of the Disposal comprises a maximum cash consideration of US$9 million payable in five instalments. US$3 million is payable on completion and the balance of US$6 million in four equal quarterly instalments during the 12 months following completion. In addition, the Purchaser will be assuming the net current liabilities of the Gaming Operations of US$2 million, implying an enterprise value of US$11 million.
The cash consideration will be reduced by the extent to which the net current liabilities of the Gaming Operations at completion exceed $2 million. Currently, these are expected to be approximately US$3 million. The final amount will be dependent, inter alia, on the trading performance of the Gaming Operations during the period through to the completion date.
Had the Group’s Gaming Operations been closed down, the Board estimates that the cost of severance and closure would have been approximately US$6 million.
Reasons for the disposal
In the United States, the passing into law of the Unlawful Internet Gambling Enforcement Act on 13 October 2006, means that the receipt of funds from US residents by online entertainment companies located in any other country of the world in connection with internet gambling, has become a Federal offence.
The Board received legal advice and representations from its lawyers, bankers and other advisors and concluded, in common with many other listed companies in the sector, that it is no longer possible for the Group to provide its services to United States residents.
The two key issues which led to this conclusion are the possibility of the extra-jurisdictional application of United States legislation and the restrictions on financial transaction processing which are following from the Act. As a result, the Group suspended the accounts of United States residents on 13 October 2006.
Over the last 18 months, the Group has made good progress in increasing the level of business from countries other than the United States, principally in Europe. This has been achieved by a number of initiatives including the introduction of European facing brands and the development of a proprietary multi-currency operating platform. Despite this progress, however, the US market still represented over 85% of the Group's revenues in the period from 3 July 2006 to 13 October 2006.
The Board has considered whether its non-US business could be profitable on the basis of a substantially reduced cost base, but has determined that this would not be possible without a major increase in trading volume. In the current environment, such expansion would require substantial investment in marketing and brand development, or the acquisition of existing non-US facing operators. The Group does not have access to the funds required to adopt either of these strategies and accordingly, the Board has concluded that it is in the best interests of shareholders to dispose of the Group's entire gaming operations and infrastructure.
The Board has considered approaches from a number of interested parties and has concluded that the terms agreed with the Purchaser represent the best available to the Group. In addition to the cash consideration receivable of up to US$9 million, the Purchaser is also assuming the net current liabilities of the Gaming Operations and has undertaken to honour the existing employment rights of employees and the Group's obligations to its customers.
The Purchaser has stated that it intends to invest in developing its own brand into the European and Asian markets utilising the multi-currency shared purse operating platform developed by the Group. The Purchaser has also undertaken not to use any URL, trade mark, brand name or other intellectual property acquired from the Group to provide services to United States residents, following its purchase of the Gaming Operations.
Use of Proceeds and Post Disposal Strategy
The Group will have exited its gaming interests in their entirety, immediately following the Disposal. As a result, the net assets of Betcorp will comprise cash, the deferred consideration payable by the Purchaser and creditors. The Board believes that shareholders' best interests will be served by the return of funds to them and the Board's plans for this will be announced as soon as possible. Shares traded on AIM and currently listed on ASX will rank pari passu in any future dividend or distribution, both before and after the de-listing of the Company's shares from ASX.
Extraordinary General Meeting
Completion of the Disposal is subject to the prior approval of Shareholders at an EGM expected to take place within the next four weeks. A notice of EGM and an explanatory memorandum will be sent to shareholders shortly.
Commenting on the acquisition, Colin Walker, Chief Executive Officer said:
"I am pleased that we have secured the sale of our operating subsidiaries to the Bodog Entertainment Group, one of the leading companies in the digital entertainment sector. In very difficult circumstances we have achieved a satisfactory outcome for shareholders and have been able to safeguard the interests of our customers and employees."
http://content.sininter.com/2006-10-20 Disposal of Gaming Operations v3 FINAL.pdf
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Courtesy of poster anjac
BETCORP LTD
NOTICE TO CUSTOMERS
OCTOBER 20TH
On October 20th Betcorp Limited entered into an agreement to sell its gaming operations in Antigua and Toronto to Bodog Entertainment Group SA. This agreement is subject only to the approval of the shareholders of Betcorp at an Extraordinary General Meeting.
The Company will shortly be sending a Notice providing the requisite 21 days notice of such a meeting to its shareholders.
The meeting to approve the Disposal will take place on November 15th. A copy of the Press Release explaining this Proposed Disposal is available on the Betcorp Limited website at www.betcorp.com.au
The implications of this for our customers are:-
1 We will continue to accept deposits and wagers from non-US residents and process withdrawals in the normal way
2 The accounts of US residents, which were suspended on the 13th October immediately following the passage of the Unlawful Internet gaming Enforcement Act, will continue to be suspended until shareholder approval for the Disposal has been received. US Residents will not be able to deposit, wager or withdraw from their accounts.
The Company recognises that this will continue to annoy and inconvenience its customers and reassures them that it would not be taken unless it were absolutely necessary. The Company can however reassure all customers that their funds are safeguarded and that all their funds will be available for withdrawal following the approval by shareholders of the Disposal.
Betcorp asks US customers please not to take any frustrations out on its customer service staff, as they have no control over the situation and will not be able to provide any information additional to that set out in this notice.
Thank You
BETCORP LTD
NOTICE TO CUSTOMERS
OCTOBER 20TH
On October 20th Betcorp Limited entered into an agreement to sell its gaming operations in Antigua and Toronto to Bodog Entertainment Group SA. This agreement is subject only to the approval of the shareholders of Betcorp at an Extraordinary General Meeting.
The Company will shortly be sending a Notice providing the requisite 21 days notice of such a meeting to its shareholders.
The meeting to approve the Disposal will take place on November 15th. A copy of the Press Release explaining this Proposed Disposal is available on the Betcorp Limited website at www.betcorp.com.au
The implications of this for our customers are:-
1 We will continue to accept deposits and wagers from non-US residents and process withdrawals in the normal way
2 The accounts of US residents, which were suspended on the 13th October immediately following the passage of the Unlawful Internet gaming Enforcement Act, will continue to be suspended until shareholder approval for the Disposal has been received. US Residents will not be able to deposit, wager or withdraw from their accounts.
The Company recognises that this will continue to annoy and inconvenience its customers and reassures them that it would not be taken unless it were absolutely necessary. The Company can however reassure all customers that their funds are safeguarded and that all their funds will be available for withdrawal following the approval by shareholders of the Disposal.
Betcorp asks US customers please not to take any frustrations out on its customer service staff, as they have no control over the situation and will not be able to provide any information additional to that set out in this notice.
Thank You
For Canadian customers of WWTS:
"On the morning of November 15th 2006, the shareholders of Betcorp Limited approved the final sale of it's operating subsidiaries to Bodog Entertainment Group SA.However, because Bodog does not operate within Canada, all Canadian customers will now receive their service from Bowmans.com. In choosing where to send Canadian clients, Bodog looked for a site with similar products, a reputation for great service and a long history in Canada. Bowman's was the natural choice and they know you will be in good hands!
We’d like to welcome you as a new member of Bowmans.com! For your convenience, all your account details have been migrated to Bowmans.com.
Your existing username and password will work for your new Bowmans account, and all of your account details have been passed over, including your entire account balance, and any pending bets.
For security reasons we have not imported any credit card information. You can register your credit cards by calling our friendly support staff, or by following the simple instructions once you have logged on to your new Bowmans.com account.
As a big welcome to Bowmans we are also offering you a 10% bonus on your entire BetWWTS account balance*! This is available for all customers, whether you play Sportsbook, Poker, Casino, or all three! Your account log-in and balance is good across all our products, so make sure you check out all we have to offer."
Hat tip: X-Files
"On the morning of November 15th 2006, the shareholders of Betcorp Limited approved the final sale of it's operating subsidiaries to Bodog Entertainment Group SA.However, because Bodog does not operate within Canada, all Canadian customers will now receive their service from Bowmans.com. In choosing where to send Canadian clients, Bodog looked for a site with similar products, a reputation for great service and a long history in Canada. Bowman's was the natural choice and they know you will be in good hands!
We’d like to welcome you as a new member of Bowmans.com! For your convenience, all your account details have been migrated to Bowmans.com.
Your existing username and password will work for your new Bowmans account, and all of your account details have been passed over, including your entire account balance, and any pending bets.
For security reasons we have not imported any credit card information. You can register your credit cards by calling our friendly support staff, or by following the simple instructions once you have logged on to your new Bowmans.com account.
As a big welcome to Bowmans we are also offering you a 10% bonus on your entire BetWWTS account balance*! This is available for all customers, whether you play Sportsbook, Poker, Casino, or all three! Your account log-in and balance is good across all our products, so make sure you check out all we have to offer."
Hat tip: X-Files
From an email sent earlier (though this is mostly common knowledge by now):
Bodog has freed up all player accounts, and added 10% to everyone's balance if they choose to continue playing.
Bodog uploaded all future wagers, and will honor any wagers that were settled during the time WWTS was off the air.
Bodog has freed up all player accounts, and added 10% to everyone's balance if they choose to continue playing.
Bodog uploaded all future wagers, and will honor any wagers that were settled during the time WWTS was off the air.
- Status
